South Carolina Auto Insurance Requirements: Minimum Coverage

Quick Answer: South Carolina Minimum Auto Insurance

South Carolina requires every auto policy to carry liability insurance and uninsured motorist coverage at these minimum limits:

The liability minimum is commonly written as 25/50/25 (S.C. Code § 38-77-140) — see how it compares with minimum auto insurance in other states. Uninsured motorist (UM) coverage is mandatory at those same limits (§ 38-77-150). Underinsured motorist (UIM) coverage is different: your insurer must offer it, but it is optional (§ 38-77-160).

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What South Carolina Law Requires

South Carolina's rules come from two parts of the Code:

1. Liability insurance at 25/50/25 — § 38-77-140
2. Uninsured motorist coverage on every auto policy, at no less than 25/50/25 — § 38-77-150. The statute makes it a required part of the policy and gives no way to reject it.
3. An offer of underinsured motorist coverage up to your liability limits, which you may accept or decline — § 38-77-160
4. Continuous coverage on every registered vehicle — if a registered vehicle becomes uninsured, the owner must insure it or surrender the plate and registration (§ 56-10-240)

South Carolina also ended its old "uninsured motor vehicle fee" option. That section of the Code (§ 56-10-510) was repealed by 2023 Act No. 51, effective 1 July 2024, so every registered vehicle now needs insurance.

Understanding 25/50/25 Coverage

Bodily Injury Liability - $25,000/$50,000

This covers injuries you cause to other people:

• $25,000 maximum per injured person
• $50,000 maximum per accident (total for all injured people)
• Covers medical bills, lost wages, pain and suffering
• Does NOT cover your own injuries

Property Damage Liability - $25,000

This covers damage you cause to others' property:

• Other vehicles you hit
• Buildings, fences, guardrails
• Other personal property
• Does NOT cover damage to your own vehicle

Uninsured Motorist Coverage - $25,000/$50,000/$25,000

This protects YOU when an uninsured driver is at fault:

• Covers your injuries caused by an uninsured driver
• Covers damage to your vehicle, subject to a possible $200 exclusion
• Required on every policy
• The Insurance Research Council estimated that 10.3% of South Carolina drivers were uninsured in 2023 — below the national estimate of 15.4%, but still about one driver in ten

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UM Is Mandatory; UIM Is Optional

The two coverages are often lumped together as "UM/UIM", but South Carolina treats them differently:

What this means: if you decline UIM and a driver with minimum 25/50/25 coverage seriously injures you, their policy may pay only $25,000 toward your injuries. UIM on your own policy is what fills that gap, so it is worth considering even though it is optional.

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Penalties for Driving Uninsured in South Carolina

Operating an uninsured vehicle (§ 56-10-520)

It is unlawful to operate, or allow someone to operate, an uninsured motor vehicle that is registered or required to be registered in South Carolina.

Only convictions within the previous five years count as priors. On top of the criminal penalty, the Department of Motor Vehicles suspends the driver's license and all registrations and license plates, and reinstatement requires a fee set by § 56-10-520, which the statute adjusts over time.

Letting insurance lapse on a registered vehicle (§§ 56-10-240, 56-10-245)

The simplest way to avoid these charges when you stop driving a vehicle is to surrender its plate and registration before cancelling the insurance.

If you cause an accident while uninsured

South Carolina's financial responsibility law lets SCDMV suspend the license of a driver involved in a reportable accident who was uninsured, unless they deposit security for the damages or qualify for an exception (§§ 56-9-351, 56-9-352). You also remain personally liable for everything the other people lose.

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Why South Carolina's Minimums Aren't Enough

While South Carolina's $25,000 property damage minimum is higher than some states', its limits are still low against a serious accident.

What Happens When Minimums Aren't Enough

Example: You cause an accident injuring three people with $90,000 in combined medical bills and totaling two vehicles worth $60,000.

• Total damages: $150,000
• Your 25/50/25 coverage pays: $75,000 maximum ($50,000 bodily injury + $25,000 property damage)
• The injured parties can pursue you for the remaining $75,000

A court judgment against you can be enforced against your property and assets.

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Recommended Coverage for South Carolina Drivers

Minimums are a legal floor, not a recommendation. Commonly suggested levels:

A step up: 50/100/50

Stronger protection: 100/300/100

Additional Coverages to Consider

Medical Payments (MedPay)

• Covers your medical bills regardless of fault
• Pays quickly without waiting for claims to settle

Collision Coverage

• Pays to repair your car after accidents
• Usually required by your lender if you have a loan or lease
• Subject to a deductible

Comprehensive Coverage

• Covers theft, vandalism, fire, hail, falling trees, animals — and flood
• Usually required by your lender if you have a loan or lease
• Especially relevant in coastal areas with hurricane risk

Umbrella Liability

• Adds liability coverage above your auto (and home) policy limits

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SR-22 Requirements in South Carolina

Some drivers must file proof of financial responsibility — an SR-22 certificate from their insurer — as part of clearing a suspension, for example after certain convictions or an uninsured accident.

Important: Not all insurers file SR-22s. You may need a non-standard or high-risk insurer.

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Special Coverage Considerations for South Carolina

Hurricane and Weather Coverage

South Carolina's coastal location creates unique risks. Comprehensive coverage is what pays for:

• Hurricane wind damage
• Fallen trees and debris
• Hail damage
• Flood damage, including storm surge — the Insurance Information Institute notes that flood damage to a car is covered under comprehensive, not by a separate flood policy

Comprehensive is optional unless your lender requires it, so if you rely on liability only, a flooded car is not covered.

Tourism and Rental Vehicles

Myrtle Beach and Charleston attract large numbers of visitors, and out-of-state drivers may carry their home state's (sometimes lower) minimums. Your own UM and UIM coverage is what protects you if one of them causes a crash and is under-covered.

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Frequently Asked Questions

Is car insurance required in South Carolina?

Yes. Every auto policy must include 25/50/25 liability coverage and uninsured motorist coverage at the same limits. Operating an uninsured vehicle is a crime with fines or jail, and it leads to suspension of your license, registration and plates.

Can I reject uninsured motorist coverage in South Carolina?

No. Uninsured motorist coverage is a required part of every auto policy (§ 38-77-150). Underinsured motorist coverage is different: your insurer must offer it, but you can decline it (§ 38-77-160).

What happens if I let my insurance lapse in South Carolina?

Your insurer reports the cancellation to SCDMV within 15 days. Unless you insure the vehicle or surrender its plate and registration, SCDMV suspends your driving privileges, plate and registration. You owe $5 a day (up to $200 per vehicle for a first offense) and a $200 reinstatement fee — the fee is waived if you surrender the plate before the suspension.

Can I still pay a fee instead of buying insurance?

No. South Carolina's uninsured motor vehicle fee option was repealed effective 1 July 2024 (2023 Act No. 51). Every registered vehicle must be insured.

Can I drive in South Carolina with out-of-state insurance?

Visitors can drive on a valid policy from their home state. Once you live in South Carolina and register your vehicle here, you need a policy that meets South Carolina's requirements.

Does South Carolina have no-fault insurance?

No. Unlike the no-fault states, South Carolina is an "at-fault" (tort) state. The driver who causes an accident is responsible for the damages, which is why adequate liability coverage matters.

How do I lower my insurance cost in South Carolina?

• Shop around — rates vary significantly between companies
• Ask about bundling auto and home insurance
• Raise your deductibles if you can afford them
• Ask about safe-driver and defensive-driving discounts
• Maintain continuous coverage (no lapses)

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Key Takeaways

• South Carolina requires 25/50/25 liability coverage (§ 38-77-140)
• Uninsured motorist coverage is mandatory at 25/50/25, including property damage (§ 38-77-150)
• Underinsured motorist coverage is optional — insurers must offer it, and it is worth considering
• Driving uninsured carries a fine or jail and suspends your license, registration and plates
• A lapse costs $5 a day plus a $200 reinstatement fee unless you surrender the plate first
• The uninsured-vehicle fee option ended on 1 July 2024
• Comprehensive coverage is what pays for hurricane and flood damage to your car

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Important Disclaimer

This guide provides general information about South Carolina auto insurance requirements based on publicly available sources. This is not legal or insurance advice. Requirements and laws can change. Always verify current requirements with the South Carolina Department of Motor Vehicles and Department of Insurance.

Consult with a licensed insurance professional for advice specific to your situation.

Last verified: January 2026

Sources: S.C. Code §§ 38-77-140, 38-77-150, 38-77-160, 56-10-240, 56-10-245, 56-10-520, 56-10-551, 56-9-351, 56-9-620; South Carolina Department of Motor Vehicles; Insurance Research Council via the Insurance Information Institute (uninsured motorists, 2023); Insurance Information Institute (flood and comprehensive coverage)